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Writer's pictureJulie Nelson

MORTGAGE RATES 101: When will mortgage rates come down?

That's the big real estate question these days. The Fed meets end of July & then again mid-September.


It takes signs of an economic slowdown to spur the Fed to take action. So basically rates have stayed high because the economic indicators have been solid.


In order to see rates improve, the Feds will be looking for:


decreasing inflation, slower new job creations , and potentially increase in unemployment filings >>> all signs of an economic slowdown that will spur the Fed to take action in lowering the Fed funds rate.


Now the Fed reserve rate is NOT the same as mortgage rates - those are two different things - the Fed rate influences mortgage rates, but does not set them.


There are other people who can nerd out on this monetary discussion way more than I, but wanted to give you the 101 version of when will mortgage rates come down?


We are hoping for this fall; sooner would be better to bump home buyers off the fence & kick the Austin home market into a higher gear.


If you are a buyer or a potential buyer, it's actually a good market for you right now (plenty of homes to choose from) & you can refinance later or can negotiate a rate buy-down concession with the seller. A bit over-used in the industry but we say date the rate, marry the house.


When is the best time to buy? One, when you need to ... two, when you find the house you love.

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